Starlite Holdings Ltd. provided group earnings guidance for the year ending March 31, 2012. For the period, the group is expected to record a loss as compared to a profit recorded for the previous corresponding financial year. Such expected loss is mainly attributable to (i) the unfavourable market environment in the United States and Europe where the majority of the Group's revenue is derived from, as a result the Group is expected to record a double-digit decrease in turnover for the year ending 31 March 2012; the increase in the operating costs (in particular, labor costs) in the People's Republic of China and the prevailing high price of raw materials, which cannot be fully passed on to customers due to intense competition in the printing and packaging industry, thus affecting the Group's profitability; and an impairment provision that is likely to be made by the group to reflect the sustained loss of its Suzhou operation, which is expected to have significant impact on the group's results. The board considers that the overall financial position and operations of the Group remain solid despite the unsatisfactory results for the year ending 31 March 2012 that are expected to be recorded.